MSME definition, why it is important for India

MSME Definition

1. Introduction on MSME By: Robin Agrawal

2. 1. Definition and importance of MSME 2. classification of msme 3. ib msme products 4. Other MSME Products 5. digital advancement TOPICS

3. MSME Definition and importance Entities involved in the production, manufacturing and processing of goods, commodities and services. The concept of MSME was first introduced by the government of India through the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. MSME play a critical role in creating momentum to the growth of the Indian economy It contributes to over 30 per cent of the overall GDP, and 40 per cent of the total exports It has a vast network of about 63 million enterprises and provides employment to over 110 million people

4. classification Types of Enterprise Investment in Plant & Machinery or Equipments (Should not Exceed) Turnover (Should not Exceed) Micro Rs.1.00 Crore Rs.5.00 Crore Small Rs. 10.00 Crore Rs. 50.00 Crore Medium Rs.50.00 Crore Rs.250.00 Crore

5. Role of msme in india Export Employment Innovation Entrepreneurship

6. MSME SAKHI Parameters Norms Target Group Members of Self Help Group with satisfactory repayment track record of 2 years. Availed two rounds of finance from SHG; first loan fully repaid; second loan may be running. Interest Rate Repo + 3.60% Processing Charges Nil Margin 10% Repayment Terms 60 Months (Door to Door) Loan Amount Rs.0.10 Lakh to Rs.4.00 Lakh

7. MSME LAP S.No . Particulars Guidelines 1 Eligibility The constitution of Borrower can be Individuals, Proprietorship firm, Partnership firm, LLP, Pvt Ltd. Companies, etc. 2 Facility Term Loan Dropline OD Facility 3 Loan Amount Minimum Loan Amount: Above Rs.10.00 Lakhs Maximum Loan Amount: Rs.10.00 Crores 4 Margin 40% of the security value. 5 Assessment Assessment based on security value of EM property (RSV) after deducting stipulated margin and compliance to DSCR and other applicable benchmark ratios. 6 Security Immovable property proposed to be mortgaged

8. Ind Gst S.No . Particulars Guidelines 1 Target Group Individual / Proprietorship concern 2 Facility Open Cash Credit (OCC) 3 Loan Amount Minimum Loan Amount: 5.00 Lakhs Maximum Loan Amount: Rs.25.00 Lakhs 4 Eligibility Commercial CIBIL rank – CMR 1- 4 and if CMR is not available, minimum promoters Consumer CIBIL Score is 730 and above with DPD not more than 60 days in past 12 months. 5 Assessment Turnover Method 6 Security Primary Security: Hypothecation of Stocks and Book Debts CGTMSE coverage

9. MSME SAMRIDDHI S.No . Particulars Guidelines 1 Target Group a. All units engaged in the Manufacturing/ Services / Trading b. New to Bank (Fresh / Take over) c. Business Vintage - 2 years. d. CIBIL MSME Rank (CMR) – 1 to 4. In case of non-availability of CMR, 2 Facility Term Loan/Open Cash Credit (OCC)/Secured OD 3 Loan Amount Minimum Loan Amount: Rs.25.00 Lakhs Maximum Loan Amount: Up to MSME classification 4 Margin As per MSME Policy 5 Assessment Turnover Method 6 Security a. Primary Security: Assets created out of Bank Finance b. Collateral: Minimum 75% of the loan amount by way of immovable properties (Land and Building)

10. Open term loan S.No . Particulars Guidelines 1 Objective Open Term Loan objective is to enable the existing units financed by our Bank/other Banks to have a level of comfort in tying up financial arrangement 2 Eligible Customers Existing & New Borrower having Units under Operation 3 Loan Amount Upto 20% of TL or CC (whichever is higher) with our Bank Minimum: Rs 1 lac and Maximum: Rs 5 Cr 4 Purpose Any Business Purpose 5 Margin 25% 6 Validity One Year

11. Ib Msme jewel loan S.No . Particulars Guidelines 1 Objective To meet Working Capital requirements, Purchase of Assets meant for business, Repayment of debt taken from Non-Institutional lenders for business purpose 2 Nature Term Loan Only 3 Loan Amount No Limit 4 Margin 30% 5 Processing Charges Up to Rs 1,00,000: NIL Above Rs 1,00,000: 0.10% of the limit 6 Documents required Declaration up to Rs . 3 lakhs Above Rs 3.00 lakhs : GST registration copy / Udhyam registration /any documentary proof of Business

12. Other MSME Products IB Tradewell IND SME Secure IB Contractor IB My own Shop IB Doctor Plus IND SME Ease IND Surya Shakti IND PM Vishwakarma Weaver MUDRA IND SME-EASE

13. Recent developments 1 . Pre-approved Business Loans 2. MSME Digi Jewel Loan 3. MSME auto renewal of accounts 4. Digital renewal of Ind - GST accounts 5. Online Shishu Mudra Loans

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